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. . . Since the beginning of the year, all or portions of 16 states have been declared drought disasters areas, making farmers in those areas eligible for emergency farm loans. For more information and eligibility requirements on USDA disaster assistance, producers should contact their local FSA office or visit FSA's web site at: http://www.fsa.usda.gov. Reclamation's Centennial Celebration: June 17 was the centennial birthday ofthe Bureau of Reclamation. A copy of the speech delivered by Commissioner Keys to mark the occasion is attached. Reclamation celebrated with the Uncompahgre Valley Water Users on June 6 in Montrose and with the San JUan and Dolores water users at Vallecito Dam on June 7. The CWCB presented resolutions of appreciation to the Bureau of Reclamation at the celebration in Montrose, Colorado and at Vallecito Reservoir. In addition, the CWCB also provided resolutions of appreciation to numerous Reclamation project sponsors that participated in the celebration events. Congressional Drought Hearing: On June 3 the U.S. House of Representatives' Science Committee held a hearing on "Drought: Prediction, Preparation & Response" in Salt Lake City. The Committee heard testimony from regional, state and local experts on their efforts to develop and use better tools for predicting drought conditions and managing water resources, expressing particular interested in learning how federal programs can better support local efforts in mitigating the effects of drought. Many who testified quoted Western writer Wallace Stegner, saying, "Living in the desert calls for a certain humility." The experts noted that there are scores of definitions of drought, but it is a common recurring phenornenon linked to below normal precipitation. Further, while global climate models cannot predict when droughts will occur there is a possibility they will be more frequent and severe. The hearing was held in this, the fourth year of drought in most Western states. National Drought Preparedness Act: On May 31 the Western States Water Council (WSWC) sent a letter to western senators stating, "It is high time for our nation to have a comprehensive national policy for drought." The letter noted this year's drought has already led to crop and pasture losses, drinking water supply shortages, wildfires and dust storms. It continued, "Although drought visits some part of the country every year, there still does not exist a permanent national policy to prepare for and respond to drought disasters. This lack of a coordinated, integrated federal drought policy causes confusion at the state and local levels and results in actions being taken mainly through special legislation and ad hoc measures rather than through a systematic and permanent process, as occurs with other natural disasters. The governors believe there is a better way to do business." The Council's statement supports enactment of the National Drought Preparedness Act. Two bills, S. 2528 and H.R. 4754, attempt to direct a national drought policy, with the Federal Emergency Management Agency (FEMA) as the lead agency. They create aN ational Drought Council to begin delineating the roles and responsibilities for coordinating and integrating federal drought assistance programs. The legislation encourages drought preparedness and planning and focuses federal financial assistance on implementing plans to mitigate drought impacts. The bills encourage the establishment of a National Drought Monitoring Network to collect and integrate key drought-related data, including streamflow, ground water levels, reservoir storage, soil moisture, snow pack, precipitation and temperature. Hal Simpson and Kent Holsinger are the state's representatives to the WSWC and they may be able to provide us with more information about the WSWC's activities at our meeting. TMDLs: On May 15 the EPApublished a proposed Water Quality Trading Policy in the Federal Register. The proposed policy is intended to address issues left open and limitations encountered